The financial statements of the company have been prepared in accordance with the
generally accepted accounting principles in India (Indian GAAP). The company has prepared
these financials statements to comply in all material aspects with the accounting standard
notified under Section 133 of the Companies Act, 2013, read together with paragraph 7 of
the Companies (Accounts) Rules 2014. The financial statements have been prepared under the
historical cost convention on an accrual basis except in case of assets for which
revaluation was carried out.

The accounting policies adopted in the preparation of financial statements are
consistent with those of previous year.

1. Significant accounting policies:

Use of estimates

The preparation of financial statements in conformity with generally accepted
accounting principles in India requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities
and the disclosure of contingent liabilities at the date of the financial statements and
the results of operations during the reporting year. Although these estimates are based
upon management's best knowledge of current events and actions, actual results could
differ from the estimates and the difference is recognized in the statement of profit and
loss of the relevant period.

Tangible and intangible fixed assets

Fixed assets are stated at cost (or revalued amounts, as the case may be) less
accumulated depreciation/amortization and impairment losses, if any. Cost comprises the
purchase price and any attributable cost of bringing the asset to its working condition
for its intended use.

Depreciation/amortisation

Leasehold land is amortized on a straight line basis over the period of lease.
Depreciation on fixed assets is calculated on straight line basis using the rates arrived
at based on the useful lives estimated by the management. The company has used the
following life to provide Depreciation/amortization on its fixed assets:-

Description of Assets

Useful life

Intangible Assets

Amortised over:

Brand

120 Months

Software

36 Months

Marketing and technical rights for formulations

120 Months

Technical know how

60 Months

Goodwill

120 Months

Tangible Assets

Buildings

30 Years

Plant and Machinery

10 Years

Furniture and Fixtures

10 Years

Office equipments - Air Conditioners

5 Years

Office equipments - Others

10 Years

Computer

4 Years

Laptops

3 Years

Motor vehicles

8 Years

Leasehold Improvements

Amortised over lease period

The management has estimated, supported by independent assessment by professionals, the
useful lives of the following classes of assets.

The useful lives of plant and machinery are estimated as 10 years. These lives are
lower than those indicated in schedule II of the Companies Act 2013. Further, the useful
lives of office equipment and computers are estimated as 10 years and 4 years
respectively. These lives are higher than those indicated in schedule II of the Companies
Act 2013.

Research and development cost

Research costs are expensed as incurred. Development expenditure incurred on an
individual project is recognized as an intangible asset when the company can demonstrate
all the following:

 l The technical feasibility of completing the intangible asset so that it will
be available for use or sale

 Its intention to complete the asset

 Its ability to use or sell the asset

 How the asset will generate future economic benefits

 The availability of adequate resources to complete the development and to use or
sell the asset

 The ability to measure reliably the expenditure attributable to the intangible
asset during development.

Following the initial recognition of the development expenditure as an asset, the cost
model is applied requiring the asset to be carried at cost less any accumulated
amortization and accumulated impairment losses. Amortization of the asset begins when
development is complete and the asset is available for use. It is amortized on a straight
line basis over the period of expected future benefit from the related project, i.e., the
estimated useful life of five years. Amortization is recognized in the statement of profit
and loss. During the period of development, the asset is tested for impairment annually.

Impairment

The carrying amounts of assets are reviewed at each balance sheet date if there is any
indication of impairment based on internal/external factors. An impairment loss is
recognized wherever the carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the asset's net selling price and value in use. In
assessing value in use, the estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market assessments of the time
value of money and risks specific to the asset.

Leases

Company is the Lessee

Leases, where the lessor effectively retains substantially all the risks and benefits
of ownership of the leased item, are classified as operating leases. Operating lease
payments are recognized as an expense in the statement of profit and loss on a
straight-line basis over the lease term.

Company is the Lessor

Leases in which the company does not transfer substantially all the risks and benefits
of ownership of the asset are classified as operating leases. Assets subject to operating
leases are included in fixed assets. Lease income on an operating lease is recognized in
the statement of profit and loss on a straight-line basis over the lease term. Costs,
including depreciation, are recognized as an expense in the statement of profit and loss.
Initial direct costs such as legal costs, brokerage costs, etc. are recognized immediately
in the statement of profit and loss.

Investments

Investments that are readily realisable and intended to be held for not more than a
year from the date on which such investments are made are classified as current
investments. These are valued at lower of cost or fair value (repurchase price or market
value) on an individual item basis.

Investments other than current are classified as Non-Current Investments which are
valued at cost less provision for diminution in value, other than temporary, if any.

Inventories

Inventories are valued as follows:

Raw Material and Packing Material

Lower of cost and net realizable value. However, materials and other items held for use
in the production of inventories are not written down below cost if the finished products
in which they will be incorporated are expected to be sold at or above cost. Cost is
determined using standard cost method adjusted for variances, which approximates actual
cost based on weighted cost formula.

Work-in-progress and finished goods

Lower of cost and net realizable value. Cost includes direct materials and labour and a
proportion of manufacturing overheads based on normal operating capacity. Cost of finished
goods includes excise duty. Cost is determined using standard cost method adjusted for
variances, which approximates actual cost based on weighted cost formula.

Net realizable value is the estimated selling price in the ordinary course of business,
less estimated costs of completion and estimated costs necessary to make the sale.

Traded goods are valued at lower of cost and net realizable value. Cost Includes cost
of purchase and other costs incurred in bringing the inventories to their present location
and condition. Cost is determined on a weighted average basis.

Cash and Cash equivalents

Cash and cash equivalents for the purpose of Cash flow statement comprise of cash at
bank and in hand and short term investments with an original maturity of three months or
less.

Foreign currency transactions

Foreign currency transactions during the year are recorded at rates of exchange
prevailing on the date of transactions. Foreign currency monetary items are translated
into rupees at the rate of exchange prevailing on the date of the balance sheet. Exchange
differences arising on the settlement of monetary items or on reporting monetary items of
Company at rates different from those at which they were initially recorded during the
year or reported in the previous financial statements, are recognised as income or as
expenses in the year in which they arise.

Non-monetary items which are carried in terms of historical cost denominated in a
foreign currency are reported using the exchange rate at the date of the transaction; and
non-monetary items which are carried at fair value or other similar valuation denominated
in a foreign currency are reported using the exchange rates that existed when the values
were determined.

Forward exchange contracts not intended for trading or speculation purposes

The premium or discounts arising at the inception of forward exchange contract is
amortised as expense or income over the life of the contract. Exchange differences on such
contracts are recognised in the statement of profit and loss in the year in which the
exchange rate changes. Any profit or loss arising on cancellation or renewal of forward
exchange contract is recognised as income or expense for the year.

Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will
flow to the Company and the revenue can be reliably measured.

Sale of Goods

Revenue from sale of goods is recognised when significant risk and rewards of ownership
are transferred to customers, which is generally on dispatch of goods. Net sales are
stated exclusive of excise duty, sales tax, VAT, Trade discount and are net of sales
return. Excise duty deducted from revenue (Gross) is the amount that is included in the
revenue (gross) and not the entire amount of liability arising during the year.

Service Income

Income from service rendered is recognised based on the terms of the agreements and
when services are rendered. Service income is net of service tax.

Interest

Interest Income is recognised on a time proportion basis taking into account the amount
outstanding and the rate applicable.

Dividend

Dividend Income is recognised when the companys right to receive dividend is
established by the reporting date.

Others

Other income is accounted for on accrual basis except where the receipt of income is
uncertain.

Retirement & Other employee benefits

(i) Long-term Employee Benefits

(a) Defined Contribution Plans

The Company has defined contribution plans for post employment benefits in the form of
Superannuation Fund which is recognised by the Income-tax authorities and administered
through trustees and/or Life Insurance Corporation of India (LIC). Further the Company
also has a defined contribution plan in the form of a provident fund scheme for its staff
and workmen at the Ankleshwar unit & Nepal and pension scheme under the Employee's
Pension Scheme 1995 for its all employees, which are administered by the Provident Fund
Commissioner.

All the above mentioned schemes are classified as defined contribution plans as the
Company has no further obligation beyond making the contributions. The Company's
contributions to Defined Contribution Plans are charged to the statement of profit and
loss , when an employee renders the related service. If the contribution payable to the
scheme for service received before the balance sheet date exceeds the contribution already
paid, the deficit payable to the scheme is recognized as a liability after deducting the
contribution already paid. If the contribution already paid exceeds the contribution due
for services received before the balance sheet date, then excess is recognized as an asset
to the extent that the pre payment will lead to, for example, a reduction in future
payment or a cash refund.

(b) Defined Benefit Plans

The Company has for all employees other than Ankleshwar and Nepal Staff & Workmen,
defined benefit plans for post employment benefits in the form of Provident Fund which is
administered through trustees (treated as a defined benefit plan on account of guaranteed
interest benefit). Further Company has defined benefit plan for post retirement benefit in
the form of Gratuity which is administered through trustees and LIC for all its employees
and pension for certain employees. Schemes of Provident Fund and Gratuity are recognised
by the Income-tax authorities. Liability for Defined Benefit Plans is provided on the
basis of valuation, as at the balance sheet date, carried out by an independent actuary.
The actuarial valuation method used by independent actuary for measuring the liability is
the Projected Unit Credit method.

(c) Other Long-term Employee Benefit

The Company has for all employees other long-term benefits in the form of Long Service
Award and Leave Encashment as per the policy of the Company. Liabilities for such benefits
are provided on the basis of valuation, as at the balance sheet date, carried out by an
independent actuary. The actuarial valuation method used by an independent actuary for
measuring the liability is the Projected Unit Credit method.

(ii) Actuarial gains and losses (for defined benefit and other long term benefit)
comprise experience adjustments and the effects of changes in actuarial assumptions and
are recognised immediately in the statement of profit and loss as income or expense.

(iii) Termination benefits are recognised as an expense as and when incurred.

Taxation

Tax expense comprises current and deferred tax. Current income-tax is measured at the
amount expected to be paid to the tax authorities in accordance with the Income-tax Act,
1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where
the company operates. The tax rates and tax laws used to compute the amount are those that
are enacted or substantively enacted, at the reporting date.

Deferred income taxes reflect the impact of current year timing differences between
taxable income and accounting income for the year and reversal of timing differences of
earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or
substantively enacted at the Balance Sheet date. Deferred tax assets and deferred tax
liabilities are offset, if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred tax assets and deferred tax
liabilities relate to the taxes on income levied by the same governing taxation laws.
Deferred tax assets are recognised only to the extent that there is reasonable certainty
that sufficient future taxable income will be available against which such deferred tax
assets can be realised. The carrying amount of deferred tax assets are reviewed at each
balance sheet date.

Segment Reporting

Identification of segments

According to the Nature of Products and Services provided, the operations of the
Company represent a single primary business segment relating to pharmaceuticals. Secondary
segment reporting is performed on the basis of location of the customers.

Allocation of common costs

Common allocable costs are allocated to each segment according to the relative
contribution of each segment to the total common costs.

Segment accounting policies

The company prepares its segment information in conformity with the accounting policies
adopted for preparing and presenting the financial statements of the company as a whole.

Earnings per Share

Basic earnings per share is calculated by dividing the net profit or loss for the
period attributable to equity shareholders (after deducting attributable taxes) by the
weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for
the period attributable to equity shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects of all dilutive potential
equity shares.

Provisions and Contingencies

The Company creates a provision when there exist a present obligation as a result of
past event that probably requires an outflow of resources and a reliable estimate can be
made of the amount of the obligation. Provisions are not discounted to its present value
and are determined based on the best estimate required to settle the obligation at the
balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect
the current best estimates.

A disclosure for a contingent liability is made when there is a possible obligation or
a present obligation that may, but probably will not require an outflow of resources. When
there is a possible obligation or a present obligation in respect of which the likelihood
of outflow of resources is remote, no provision or disclosure is made.

13,904,722 (2014 : 13,904,722) equity shares of Rs. 10 each fully paid are held by
Hoechst GmbH, Germany, holding company and 4,865 (2014 : 4,865) equity shares of Rs. 10
each fully paid are held by Sanofi S.A., France ultimate holding company

b) Reconciliation of the shares outstanding at the beginning and at the end of the
reporting period

December 31, 2015

December 31, 2014

Numbers

Amount

Numbers

Amount

in Lacs

in Lacs

At the beginning of the year and outstanding at the end of the year

23,030,622

2,303

23,030,622

2,303

c) Terms/rights attached to equity shares

The Company has only one class of equity shares having a face value of Rs. 10 per
share. Each holder of equity shares is entitled to one vote per share. The final dividend
proposed by the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be
entitled to receive remaining assets of the Company. The distribution will be in
proportion to the number of equity shares held by the shareholder.

d) Details of Shareholders holding more than 5% shares in the company

December 31, 2015

December 31, 2014

No of Shares

% of Holding

No of Shares

% of Holding

Hoechst GmbH, Germany

13,904,722

60.37

13,904,722

60.37

Reliance Capital Trustee Company Limited

1,075,925

4.67

1,287,005

5.59

Aberdeen Global Indian Equity Fund (Mauritius) Ltd

968,883

4.20

1,238,883

5.38

As per the records of the company, including its register of shareholder/members and
other declarations received from shareholders regarding beneficial interest, the above
shareholding represents both legal and beneficial ownerships of shares.

December 31, 2015

December 31, 2014

Rupees in Lacs

Rupees in Lacs

3. RESERVES AND SURPLUS

Capital reserve

349

349

Securities premium account

204

204

Revaluation reserves

Balance as per last balance sheet

346

1,027

Less: Transferred to statement of profit and loss as reduction from depreciation

80

Less: Transferred to General Reserve

320

601

Closing Balance

26

346

General Reserves

Balance as per last balance sheet

31,002

27,765

Add: Transferred from surplus balance in the statement of profit and loss

(i) Excise duty on sales amounting to Rs. 4,976 Lacs (2014 : Rs. 4,804 Lacs) has been
reduced from sales in statement of profit & loss and increase of excise duty on
inventory, sample etc. amounting to Rs. 336 Lacs (2014 : Rs. 213 Lacs) has been considered
as expense in Note 24 of financial statements.

18(a) Details of Products sold

Formulations

204,668

187,345

Bulk Drugs

260

155

204,928

187,500

18(b)Details of Services rendered

Business Auxiliary Services

12,278

8,543

12,278

8,543

18(c) Other Operating Income

Sale of Scrap

97

102

Export Incentives

1,601

706

Indirect taxes set off/ refunds

389

403

Others

11

494

2,098

1,705

December 31, 2015

December 31, 2014

Rupees in Lacs

Rupees in Lacs

19. OTHER INCOME

Interest

Bank deposits

2,574

2,199

Inter corporate deposits

1,637

2,008

Others (Includes interest on income tax refunds, employee loans, etc)

675

852

Gain on disposal of fixed assets (net)

17

Rent

8

1,064

Exchange difference (net)

25

Provision no longer required written back (net)

76

103

Provision for doubtful debt written back (net)

114

Miscellaneous Income

142

73

5,137

6,430

20. COST OF MATERIAL CONSUMED

Inventory at the beginning of the year

15,495

16,786

Add: Purchases

67,147

62,426

Less: Inventory at the end of the year

19,250

15,495

Cost of Material Consumed

63,392

63,717

Details of Material Consumed

Active Pharma Ingredients

53,114

53,094

Packing Materials

10,278

10,623

63,392

63,717

Details of Inventory at the end of the year

Active Pharma Ingredients

16,960

13,225

Packing Materials

2,290

2,270

19,250

15,495

December 31, 2015

December 31, 2014

Rupees in Lacs

Rupees in Lacs

21. PURCHASE OF TRADED GOODS

Purchase of Traded Goods

34,126

48,787

34,126

48,787

Details of Purchase of Traded Goods

Formulations

34,126

48,787

34,126

48,787

22. CHANGES IN INVENTORIES OF FINISHED GOODS, WORK IN PROGRESS AND TRADED GOODS

December 31, 2015

December 31, 2014

(Increase)/Decrease

Rupees in Lacs

Rupees in Lacs

Rupees in Lacs

Inventory at the end of the year

December 2015

Traded Goods

15,220

23,624

8,404

Work-in-progress

4,443

3,898

(545)

Finished Goods

9,009

4,792

(4,217)

28,672

32,314

3,642

Inventory at the beginning of the year

December 2014

Traded Goods

23,624

8,688

(14,936)

Work-in-progress

3,898

3,268

(630)

Finished Goods

4,792

5,258

466

32,314

17,214

(15,100)

Decrease / (Increase) in Inventory

3,642

(15,100)

23. EMPLOYEE BENEFITS EXPENSES

December 31, 2015

December 31, 2014

Rupees in Lacs

Rupees in Lacs

Salaries, wages and bonus

29,244

25,118

Contribution to provident fund / other funds (refer note 31)

2,189

2,119

Staff welfare expenses

1,895

1,587

33,328

28,824

December 31, 2015

December 31, 2014

Rupees in Lacs

Rupees in Lacs

24. OTHER EXPENSES

Advertisement and sales promotion

4,910

4,945

Travelling and conveyance

9,243

7,599

Selling and distribution expenses

10,371

9,181

Power and fuel

3,142

3,985

Toll Manufacturing Charges

3,895

3,445

Excise duty on inventory

336

213

Legal and professional fees

4,840

4,197

Training & meetings

2,050

1,653

Repairs - building

317

282

- plant and machinery

1,046

944

- others

1,313

1,226

Insurance

788

652

Rent

1,751

1,770

Auxiliary and other materials

1,261

1,188

Rates and taxes

1,554

756

Stores and spares

431

456

Provision for doubtful debts and advance (net)

69

Exchange difference (net)

411

Loss on disposal of fixed assets (net)

80

Auditors remuneration (Including Service Tax)

Audit fees

65

62

Tax audit fees

5

4

Certifications

5

2

Out of pocket expenses

6

2

Donations (other than political parties)

96

38

Others

3,738

2,860

51,312

45,871

Less: Reimbursement of expenses*

12,401

8,239

38,911

37,632

* Reimbusement of expenses includes expenses recovered from common shared utilities and
services from third parties. Further it also includes reimbursement of marketing support
from fellow subsidiaries.

25. The tax year for the Company being the year ending March 31, the provision for
taxation for the year is the aggregate of the provision made for the three months ended
March 31, 2015 and the provision based on the profit for the remaining nine months up to
December 31, 2015, the ultimate liability of which will be determined on the basis of the
profit for the tax year April 1, 2015 to March 31, 2016.

The Loan has been given against corporate guarantee by Sanofi S.A. (Ultimate Holding
Company).The maturity date of the same is 15th April 2017.

31. Employee Benefits

A) Defined Contribution Plans

The Company has recognised the following amounts in the statement of profit and loss
for the year:

Particulars

Dec 15

Dec 14

Rupees Lacs

Rupees Lacs

i) Contribution to Employees' Provident Fund (Ankleshwar and Nepal)

25

27

ii) Contribution to Employees' Superannuation Fund

115

100

iii) Contribution to Employee's Pension Scheme, 1995

434

275

B) Post Employment Defined Benefit Plans

Valuations in respect of Gratuity, Pension Plan and Interest shortfall on Provident
Fund have been carried out by an independent actuary, as at the Balance Sheet date, based
on the following assumptions:

#The estimates of future salary increases, considered in actuarial valuation, take
account of inflation, seniority, promotion, and other relevant factors, such as supply and
demand in the employment market.

i) Change in Benefit Obligation

Particulars

Gratuity

Pension Plan

Provident Fund

Dec 15

Dec 14

Dec 15

Dec 14

Dec 15

Dec 14

Liability at the beginning of the period

4,424

3,749

63

90

16,347

14,762

Interest Cost

359

337

5

8

1,415

1,118

Current Service Cost

297

236

*

1

697

701

Employees Contribution

1,391

1,237

Interest Gurantee

Benefits Paid

(343)

(606)

(23)

(26)

(1,121)

(1,599)

Transfer from previous employer's

Liability Transfer In

341

128

Liability Transfer Out

Provision for diminution in fair value of Plan assets

Actuarial (gain)/loss on Obligations

516

708

2

(10)

Liability at the end of the year

5,253

4,424

47

63

19,070

16,347

Funded benefit obligation

3,970

3,647

19,070

16,347

Non Funded Benefit Obligation

1,283

777

47

63

* denotes less than one lac.

ii) Fair value of Plan Assets

(Rupees Lacs)

Particulars

Gratuity

Pension Plan

Provident Fund

Dec 15

Dec 14

Dec 15

Dec 14

Dec 15

Dec 14

Fair Value of Plan Assets at the beginning of the year

3,647

3,660

16,347

14,762

Expected Return on Plan Assets

295

331

1,415

1,118

Interest Shortfall paid by the Company Employer's Contributions

361

279

697

701

Employees Contribution

1,391

1,237

Benefits Paid

(332)

(606)

(1,121)

(1,599)

Transfer from Other Approved Funds

341

128

Provision for diminution in fair value of Plan assets

Actuarial gain/(loss) on Plan Assets

(1)

(17)

Fair Value of Plan Assets at the end of the year

3,970

3,647

19,070

16,347

Contributions expected to be paid to the Plan in 2016

825

707

iii) Actual Return on Plan Assets

Particulars

Gratuity

Pension Plan

Provident Fund

Dec 15

Dec 14

Dec 15

Dec 14

Dec 15

Dec 14

Expected Return on Plan Assets

295

331

1,415

1,118

Actuarial gain/(loss) on Plan Assets

(1)

(17)

Actual Return on Plan Assets

294

314

1,415

1,118

iv) Amount Recognised in the Balance Sheet

Particulars

Gratuity

Pension Plan

Provident Fund

Dec 15

Dec 14

Dec 15

Dec 14

Dec 15

Dec 14

Liability at the end of the year

5,253

4,424

47

63

19,070

16,347

Fair Value of Plan Assets at the end of the year

3,970

3,647

19,070

16,347

Difference

1,283

777

47

63

Amount Recognised in the Balance Sheet

1,283

777

47

63

v) Expenses Recognised in the Income Statement

Particulars

Gratuity

Pension Plan

Provident Fund

Dec 15

Dec 14

Dec 15

Dec 14

Dec 15

Dec 14

Current Service Cost

297

236

*

1

697

701

Interest Cost

358

337

5

8

1,415

1,118

Expected Return on Plan Assets

(295)

(331)

(1,415)

(1,118)

Interest Guarantee

Net Actuarial (Gain)/Loss to be Recognised

517

726

2

(10)

Expense Recognised in Profit and Loss under personnel expenses

877

968

7

(1)

697

701

* denotes less than one lac.

vi) Amount for the current period and previous periods are as follows:

Particulars

Gratuity

Pension Plan

Provident Fund

Dec 15

Dec 14

Dec 13

Dec 12

Dec 11

Dec 15

Dec 14

Dec 13

Dec 12

Dec 11

Dec 15

Dec 14

Dec 13

Dec 12

Dec 11

Defined Benefit

Obligation

5,253

4,424

3,749

3,233

2,818

47

63

90

145

168

19,070

16,347

14,762

12,768

11,983

Plan assets

3,970

3,647

3,660

2,937

2,773

19,070

16,347

14,762

12,574

11,484

(Surplus)/ deficit

1,283

777

89

296

45

47

63

90

145

168

194

499

Experience adjustment on benefit obligation

Net Actuarial (Gain)/Loss due to Experience

458

295

231

133

(77)

1

(11)

(7)

18

(193)

(467)

125

Net Actuarial (Gain)/Loss due to Change in Assumption

Experience adjustment on Plan Assets

Net Actuarial Gain/(Loss) due to Experience

(1)

(17)

41

6

56

Net Actuarial (Gain)/Loss due to Change in Assumption

(2)

vii) Basis used to determine expected rate of return on assets

Expected rate of return on investments is determined based on the assessment made by
the Company at the beginning of the year on the return expected on its existing portfolio
since these are generally held to maturity, along with the estimated incremental
investments to be made during the year.

viii) General descriptions of significant defined Plans

Gratuity Plan

Gratuity is payable to all eligible employees of the Company on superannuation, death
and permanent disablement in terms of provisions of the Payment of Gratuity Act or as per
the Company's Scheme whichever is more beneficial. Benefit would be paid at the time of
separation based on the last drawn base salary

Pension Plan

Under the Company's Pension scheme, certain executives are eligible for fixed pension
for five years, depending on their level at the time of retirement on superannuation,
death or early retirement with the consent of the Company.

Provident Fund

The Company manages the provident fund through a Provident Fund Trust for its employees
(except Staff and Workmen at Ankleshwar and Nepal unit) which are permitted under The
Employees' Provident Fund and Miscellaneous Provisions Act, 1952. The Plan envisages
contribution by employer and employees and guarantees interest at the rate notified by the
Provident Fund Authority. The contribution by employer and employee, together with
interest, are payable at the time of separation from service or retirement.

(ix) Broad category of Plan assets relating Gratuity and Provident Fund as a percentage
of total Plan assets

Particulars

Gratuity

Provident Fund

Dec 15

Dec 14

Dec 15

Dec 14

Government of India securities

20%

23%

Bonds

44%

37%

Special Deposit Scheme, 1975

31%

34%

Other assets

5%

6%

Administered by Life Insurance Corporation of India

100%

100%

100%

100%

100%

100%

32. Earnings per share:

Particulars

Dec 15

Dec 14

Numerator used for calculating basic and diluted earnings per share - profit after tax
and before exceptional item (Rs. in Lacs)

23,764

19,705

Numerator used for calculating basic and diluted earnings per share - profit after tax
after exceptional item (Rs. in Lacs)

32,149

26,361

Weighted average number of shares used as denominator for calculating basic and
diluted earnings per share.

23,030,622

23,030,622

Nominal value per share (Rupees)

10

10

Basic and diluted earnings per share

Computed on the basis of earnings before exceptional items divided by weighted average
number of shares (Rupees)

103.18

85.56

Computed on the basis of earnings after exceptional items divided by weighted average
number of shares (Rupees)

*Cars are obtained on operating lease. The lease is for a period of five years for cars
and one to three years for premises and there is no provision for renewal. There is no
escalation clause in the lease agreement. There are no restrictions imposed by lease
arrangements. There are no subleases.

In respect of cancellable operating leases, lease charges charged to Statement of
profit and loss

(Rupees lacs)

Particulars

Dec 15

Dec 14

Car Lease Charges**

239

224

Premises Lease Charges**

1,488

1,496

Total

1,727

1,720

** Premises and Cars are obtained on operating lease. There is no provision for
renewal. There is no escalation clause in the lease agreement. There are no restrictions
imposed by leased arrangements. There are no subleases.

In respect of cancellable operating leases, lease income is credited to Statement of
profit and loss.

34. Other provisions:

Movements in provisions:

(Rupees Lacs)

Particulars

Indirect tax

Class of provisions Provision for Sales Returns

Others

Total

Balance as at January 1, 2015

856

5,371

2,056

8,283

(856)

(4,140)

(2,056)

(7,052)

Amount provided during the year

5,401

449

5,850

( )

(5,678)

( )

(5,678)

Amount written back/paid during the year

4,597

4,597

( )

(4,447)

( )

(4,447)

Balance as at December 31, 2015

856

6,175

2,505

9,536

(856)

(5,371)

(2,056)

(8,283)

Note: Figures in brackets are for the previous year.

i) Provision for indirect taxes represents differential excise duty, sales tax, custom
duty and service tax in respect of which the claims are pending before various authorities
for a considerable period of time and based on management's estimate of claims provision
is made on prudent basis that possible outflow of resources may arise in future.

ii) Provision for sales returns are on account of expected date expiry and breakages
returns based on historical trends.

iii) Other provisions on prudent basis are towards possible outflow of resources in
respect of legal cases pending against the Company or in respect of contractual
obligations of the Company.

35. Derivative Instruments and Un-hedged Foreign Currency Exposure:

Particulars of Derivatives Instruments as at Balance sheet date

Dec 15

Dec 14

Particulars of Derivatives

Foreign currency

Foreign currency Value

(Rupees in Lacs)

Foreign currency Value

(Rupees in Lacs)

Forward Exchange contracts for the foreign exchange exposures of receivables on
account of goods & services.

The Micro, Small and Medium Enterprises has been determined to the extent such parties
have been identified on the basis of information available with the Company.

Details of dues to Micro and Small Enterprises as per Micro, Small and Medium
Enterprise Development Act, 2006

(Rupees Lacs)

Dec 15

Dec 14

The principal amount and the interest due thereon remaining unpaid to any supplier as
at the end of each accounting year:

Principal Amount

150

76

Interest thereon remaining unpaid

*

*

Amount of interest paid in terms of section 16, of the Micro, Small and Medium
Enterprise Development Act, 2006 along with the amounts of the payment made to the
supplier beyond the appointed day during each accounting year

Amount of interest due and payable for the period of delay in making payment (which
have been paid but beyond the appointed day during the year) but without adding the
interest specified under Micro, Small and Medium Enterprise Development Act, 2006.

*

10

Amount of interest accrued and remaining unpaid at the end of each accounting year;
and

*

10

Amount of further interest remaining due and payable even in the succeeding years,
until such date when the interest dues as above are actually paid to the small enterprise
for the purpose of disallowance as a deductible expenditure under section 23 of the Micro,
Small and Medium Enterprise Development Act, 2006

41. Consequent upon the decision of the Supreme Court in the matter of prices of
certain bulk drugs fixed by the Government of India under the Drug (Prices Control) Order,
1979, the Company paid an amount of Rs. 312 lacs in 1988 being the liability determined by
the Special Team appointed by the Government. However, during 1990, fresh demands
aggregating to Rs. 7,810 lacs alleged to be payable into the Drug Prices Equalisation
Account (DPEA) were made by the Government on account of alleged unintended benefit
enjoyed by the Company. The Government has also made certain claims for applicable
interest. On a Writ Petition filed by the Company in 1991, the Bombay High Court passed an
order whereby the demands were to be treated as show cause notices. The High Court
directed the Company and the Government to furnish relevant data to each other based on
which the Government was to rework the figures. The Government did not furnish the
requisite data to the Company. In 1995, a further demand of Rs. 795 lacs was made by the
Government.

In the meantime, a Committee was constituted by the Government to determine the
liabilities of the Drug Companies. The Company filed written submissions with the
Committee and contended during the personal hearing that in the absence of the Government
furnishing the requisite data as directed by the Bombay High Court, the Company was not in
a position to make an effectual presentation before the Committee.

In January 1999, the Company filed an Application before the Bombay High Court seeking
directions to the Government to furnish the requisite data. The Application is pending. In
the meantime, the Committee has deferred further hearing of the Company's case, until the
Application is heard and decided by the Bombay High Court. In any event, the Company is
contesting the above demand.

42. Dividend remittances in foreign currency:

(Rupees Lacs)

Particulars

Dec 15

Dec 14

Dividend remitted in foreign currency

Final for year 2013

4,868

Interim for the year 2014

1,391

Final for year 2014

4,868

Interim for the year 2015

2,504

Number of non-resident shareholders

2

2

Number of shares held

13,909,587

13,909,587

All remittances are made in EURO.

43. During January 2015, Company has sold one floor of Hoechst House building for a
consideration of Rs. 2,575 lacs and accounted net gain of Rs. 1,594 lacs (net of tax of
Rs. 844 lacs). Further during November 2015, Company has sold Aventis House for a
consideration of Rs. 11,100 lacs and accounted net gain of Rs. 6,791 lacs (net of tax of
Rs. 3,594 lacs). The net gain arising from the sale of these assets has been indicated in
exceptional item in statement of profit and loss for the year.

44. Disclosure on Corporate Social Responsibility as provisions of section 135 of the
Companies Act, 2013 a. Gross amount required to be spent by the company during the year
was Rs. 621 Lacs b. Details of amount spent during the year (included in note 24: Other
Expenses)

Sr. No. Particulars

Paid

Yet to be Paid

Total

(i) Construction/acquisition of any asset

-

-

-

(ii) On purpose other than (i) above

1. Towards Reducing health inequalities around manufacturing sites

15

2

17

2. Towards Public Private Partnership with the Government of Maharashtra to impact
outcomes of patients having non-communicable diseases.